GURVANTES XXXV SOUTH GOBI NATURAL GAS PROJECT
PROJECT
OVERVIEW
The Gurvantes XXXV Project is an exploration project for Coal Seam Gas (‘CSG’) covering approximately 8,400km2 of the South Gobi basin of Mongolia.
Within the Project area multiple very thick (>50m) high quality, bituminous rank, coal seams outcrop at the surface and extend along an east-west strike for approximately 150km. Within the Project area there are six active coal mining operation, twenty six coal mining leases and numerous coal exploration licenses which combined have defined a very large coal resource.
2022
Exploration Program & Maiden Contingent
Resource
The Company’s 2022 Exploration Program consisted of seven exploration wells drilled at five sites that were approximately 2.5 kilometres apart over a ~10 kilometer strike.
The results from this campaign delivered a 1.2 Trillion Cubic Feet (TCF) Contingent Resource (2C) of gas being certified for the Project.
The independent assessment was undertaken by Netherland, Sewell and Associates (“NSAI”) which is a world-renowned petroleum consulting firm specialising in resource assessments, based in Texas.
The Contingent Resource far exceeded the Company’s pre-drill expectations and validated the scale and quality of the Gurvantes XXXV Project. This is the largest CSG Contingent Resource (1C, 2C and 3C) recorded to date in Mongolia in what is an emerging and potentially significant industry for the country.
2023
Pilot Well Program
Throughout early 2023 TMK significantly advanced the planning and design process for the pilot well program, which included up to three production wells, metering, production and testing facilities, as well as ancillary equipment required to produce gas to the surface.
The Pilot Well Program was primarily funded by Talon Energy, TMK’s partner in the Gurvantes XXXV Project. Talon elected to enter Stage 2 of the Farmout Agreement in early December 2022 and is paying the first US$3.15 million towards what is budgeted to be approximately US$3.5 million, with TMK and Talon paying their proportionate share of further costs over and above US$3.15 million.
In February 2023, TMK announced that it had signed a drilling contract with the Mongolian operating subsidiary of the Major Drilling Group – a large international Canadian based drilling company – for TMK’s maiden Pilot Well Program.
Lucky Fox-1
| Total Depth | 375 metres |
| Net Coal Thickness | 61 metres |
| Date Drilled | April 2023 |
| Production Interval Depth | 184-314 metres |
Lucky Fox-2
| Total Depth | 407 metres |
| Net Coal Thickness | 62 metres |
| Date Drilled | May 2023 |
| Production Interval Depth | 245-393 metres |
Lucky Fox-3
| Total Depth | 515 metres |
| Net Coal Thickness | 68 metres |
| Date Drilled | May 2023 |
| Production Interval Depth | 316-470 metres |
“The drilling component of the Pilot Well Program has been a tremendous success. It is a credit to our Mongolian and Australian team that they have delivered three successful wells meeting all technical objectives, safely, on time and on budget.
Brendan Stats, CEO
Intersecting over 60 metres of gassy coal in each well, which is exceptionally thick for a CSG project, demonstrates one of the unique qualities of the Gurvantes Project and bodes well for the upcoming production testing.
I am extremely pleased with the results to date and look forward to the final stages of the Pilot Well Program being completed over the coming weeks prior to turning the pumps on and commencing the dewatering process.”
2023
First Gas to Surface
In July 2023, TMK announced initial gas buildup in the casing of the Lucky Fox-1 production well was flowed to the surface and flared. This represented the first gas flowed to surface at the Gurvantes XXXV Project. The well flowed for approximately three hours which provided valuable data and also demonstrating the ability to flow gas from the coal seams being targeted by the Project.
Since commissioning all three wells approximately one week prior to the initial flare, all three wells were continuously on pump and over that period, the pump speeds were gradually increased in order to slowly reduce the fluid levels in the wells and therefore hydrostatic pressure in the reservoir.
The pump speeds were gradually increased, and as the fluid levels decreased, the reservoir began to depressurise, a process that can take several months.
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